Turkey about to conclude a deal with Israel on 'all issues': Turkish official

Istanbul: Turkey is about to conclude a deal with Israel on "all issues", a Turkish official said on Tuesday, a sign the two former allies may be moving toward a compensation agreement for the killing of 10 Turkish activists by Israeli commandos in 2010.

Passengers on the Mavi Marmara run as tear gas is fired by Israeli commandos. Photo: Kate Geraghty

The two countries have stepped up efforts in recent months to restore a relationship that was severely damaged after an Israeli raid on a Turkish boat, the Mavi Marmara, which had been trying to breach a blockade on the Gaza Strip.

The official made the comment at a briefing with reporters in Istanbul.

Turkey has insisted there can be no normalisation in ties with Israel unless its conditions for ending the Gaza blockade and compensation for the deaths of the activists are met.

Earlier, Omer Celik, a spokesman for Turkey's ruling AK Party, said in a live interview on Haber Turk television station: "The point has been reached in the talks at which [an agreement] can be signed."

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He did not say whether progress had been made on lifting the blockade.

An Israeli Foreign Ministry spokesman, when asked, said he had no comment on the matter.

Israel allows commercial goods into Gaza daily but limits the transfer of certain items such as cement and building materials as it fears militants will use them to build fortifications.

Officials describe the blockade on Gaza, which is supported by neighbouring Egypt, as a necessary means of preventing arms smuggling by Palestinian militants.